ACCT106 Managerial Accounting (Formerly Principles of Accounting II)

Department of Business Studies: Accounting

I. Course Number and Title
ACCT106 Managerial Accounting (Formerly Principles of Accounting II)
II. Number of Credits
4 credits
III. Number of Instructional Minutes
IV. Prerequisites
ACCT105 (C or better)
V. Other Pertinent Information
VI. Catalog Course Description
This course introduces students to the concepts and applications of managerial accounting. Students focus on analysis and recording of various manufacturing costs, cost-volume-profit analysis, preparation of financial statements for a manufacturer, creation of static and flexible budgets and reports, evaluation of capital investments, and various costing systems.
VII. Required Course Content and Direction
  1. Course Learning Goals

    Students will:

    1. analyze and record different types of manufacturing costs;
    2. prepare financial statements for a manufacturer using various costing systems;
    3. evaluate cost for a manufacturing company and complete cost-volume-profit analysis;
    4. prepare and evaluate static and flexible budgets and reports; and
    5. evaluate capital investment opportunities.
  2. Planned Sequence of Topics and/or Learning Activities

    1. distinguish between managerial and financial accounting
    2. identify the cost components of a product made by a manufacturing company: the cost of materials, labor, and overhead
    3. show how just-in-time inventory can increase profitability
    4. identify the key components of corporate governance
    5. identify and describe fixed, variable, and mixed cost behavior
    6. demonstrate the effects of operating leverage on profitability
    7. prepare an income statement using the contribution margin approach
    8. demonstrate how the relevant range and decision context affect cost behavior
    9. use the high- low method, scatter graphs, and regression analysis to estimate fixed and variable costs
    10. use the equation method, the contribution margin per unit, and contribution margin ratio methods to determine the break- even point
    11. set selling prices by using cost- plus, prestige, and target costing
    12. explain cost- volume- profit relationships and draw and interpret a cost-volume-profit graph
    13. calculate and interpret the margin of safety
    14. identify cost objects and cost drivers
    15. select appropriate cost drivers and demonstrate the allocation of indirect costs
    16. explain the benefits and detriments of allocating pooled costs
    17. allocate joint product costs
    18. allocate service department costs to operating departments
    19. use activity- based costing to calculate costs of products and services
    20. dentify the components of quality costs; prepare and interpret quality cost reports
    21. identify the characteristics of relevant information
    22. distinguish between unit- level, batch- level, product-level, and facility-level costs and understand how these costs affect decision making
    23. make appropriate special order and outsourcing decisions
    24. make appropriate segment elimination and asset replacement decisions
    25. prepare a sales budget and related schedule of cash receipts
    26. prepare a schedule of cash payments for inventory, purchases budget, and selling and an administrative expense budget
    27. prepare a cash budget
    28. prepare a pro forma income statement, balance sheet, and statement of cash flows
    29. describe flexible and static budgets
    30. classify variances as being favorable or unfavorable
    31. compute and interpret sales and variable cost volume variances
    32. compute and interpret flexible budget variances, fixed cost variances, and price and usage variances
    33. describe the differences among cost, profit, and investment centers
    34. relate management by exception to responsibility reports
    35. determine and interpret the net present value and the internal rate of return of an investment opportunity
    36. evaluate capital investment opportunities using cash payback and unadjusted rate of return alternatives
    37. demonstrate the flow of materials, labor costs, and estimated overhead costs for inventory and cost of goods sold for a manufacturing company
    38. prepare a schedule of cost of goods manufactured and sold
    39. prepare financial statements for a manufacturing company
    40. distinguish between absorption, variable costing, and job- order and process costing systems and identify documentation used for each system
  3. Assessment Methods for Course Learning Goals

    The assessment of course learning goals may be based on discussions, homework, quizzes, exams, assignments, papers, performance based tasks and projects, and/or instructor evaluation.
  4. Reference, Resource, or Learning Materials to be used by Student:

    See course syllabus for required textbook and any related materials.

Review/Approval Date - 5/99; Revised 3/05; Revised 12/2011; Revised 5/2012; New Core 8/2015